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Partner, Deal Advisory - Valuation
KPMG AG Wirtschaftsprüfungsgesellschaft
Preview of the KPMG Deal Capsule Life Sciences Newsletter
The new edition of our newsletter on transactions in the global life sciences industry glances back at the significant deals that took place in Q1-Q3 2022 and provides further insights on the industry’s market trends.
In continuation with the trends observed in the previous quarters, M&A activity dropped in Q1-Q3 2022 due to macroeconomic and geopolitical uncertainties:
- Declining life sciences M&A activity during Q1-Q3 2022 was impacted by geopolitical forces and deal making sentiment supported by valuation uncertainties. Investors remain selective and focused on strategic M&A opportunities to overcome patent cliffs and to strengthen their portfolio.
- The severe decrease in deal value is most evident in biotech and medical devices following the reduced activity of PE investors while the pharmaceuticals sub-sector observed increased deal activity from key players that continued to focus on inorganic growth to bolster product portfolio, while benefiting from the downtrend in valuations.
- The need for bolstering R&D as well as innovation capability to counter patent expiration, rising focus on digitization, coupled with the availability of dry powder with private equity firms pose a positive outlook for the sector in the medium-long term.